Australian Broker Call

Deutsche Bank rates 3PL as Buy (1) -

The company has announced the sale of its 40% stake in Learnosity for $25m. Deutsche Bank notes this price represents a significant discount to carrying value and the company is expected to record a loss on sale of -$24.8m for FY18.

Nevertheless, management has secured long-term access and improved pricing, a key component of its initial investment case for Learnosity. Deutsche Bank maintains a Buy rating and $1.80 target.

Target price is $1.80 Current Price is $1.49 Difference: $0.31
If 3PL meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 31.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates ALQ as Buy (1) -

FY18 net profit was in line with guidance and slightly below Citi's estimates. The commodities division beat expectations but the broker expects the stock to be weak in the short term because of the continued softness in life sciences.

Buy rating and $9.20 target maintained.

Target price is $9.20 Current Price is $7.56 Difference: $1.64
If ALQ meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.64, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates ALQ as Neutral (3) -

Operating earnings were -5% below Credit Suisse estimates in FY18 while revenue was broadly in line. The broker suggests the outlook is less upbeat than the one provided in November and the company cites cost pressures in many of its businesses.

The broker increases FY19 estimates by 3% and FY20 by 7%, given the margin improvement for commodities and life sciences and a lower tax rate. Neutral rating and $7.80 target retained.

Target price is $7.80 Current Price is $7.56 Difference: $0.24
If ALQ meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.64, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates ALQ as Hold (3) -

Morgans assesses, in a first glance at the FY18 accounts, that the miss in life sciences is unlikely to offset the better outcome in commodities, with regard to FY19 consensus downgrades and a negative market response.

The broker downgrades FY19 and FY20 estimates for earnings by -8% and -6% respectively. The broker expects the upcoming briefing will provide the clarity required but believes the stock risks losing its premium multiple until the life sciences recovery is better defined.

Hold rating retained. Target is reduced to $7.13 from $7.44.

Target price is $7.13 Current Price is $7.56 Difference: minus $0.43 (current price is over target).
If ALQ meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.64, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates ALQ as Lighten (4) -

FY18 results were below expectations. Ord Minnett estimates organic growth in life sciences was -0.3%. Commodities grew strongly, with margins of 3.6%.

The company expects to release formal guidance at the AGM in August, noting underlying global economic conditions remain stable.

Lighten. Target is $6.50.

Target price is $6.50 Current Price is $7.56 Difference: minus $1.06 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.64, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates APO as Sell (5) -

The latest 2018 guidance has signalled a surprising material improvement in trading conditions, given the company provided an update just five weeks ago at the AGM. Citi upgrades 2018 EBITDA forecasts by 8%.

The broker fears, with competing bids for HT&E's ((HT1)) Adshel business, the price may be pushed above fair value.

Sell rating is maintained. Target is raised to $4.85 from $4.50.

Target price is $4.85 Current Price is $5.48 Difference: minus $0.63 (current price is over target).
If APO meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates APO as Outperform (1) -

Credit Suisse is pleased the expected improvement over the first few months of this year has materialised. Uncertainty around a potential deal on AdShel ((HT1)) is likely to weigh in the near term, although the broker expects any deal to be accretive.

2018-20 estimates are upgraded by 8%. Outperform. Target is raised to $6.05 from $5.05.

Target price is $6.05 Current Price is $5.48 Difference: $0.57
If APO meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates APO as Buy (1) -

The company has issued a positive trading update and expects FY18 operating earnings in the $92-96m range. Deutsche Bank still looks for some moderation in revenue growth rates over the course of the year.

Buy rating maintained. Target is $5.60.

Target price is $5.60 Current Price is $5.48 Difference: $0.12
If APO meets the Deutsche Bank target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates APO as Overweight (1) -

The company has advised that earnings momentum is building. 2018 underlying EBITDA is expected to be $92-96m.

Morgan Stanley welcomes the encouraging start for the new management, particularly as the business revenue and earnings are heavily skewed to the second half.

Overweight. Target is $6.30. Industry view: Attractive.

Target price is $6.30 Current Price is $5.48 Difference: $0.82
If APO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates APO as Hold (3) -

The company has upgraded its guidance range for FY18 after a better-than-expected performance in the first five months of the year. Outdoor advertising was strong overall but transit advertising was the highlight for Morgans.

The broker maintains a Hold rating and raises the target to $5.35 from $4.86. Forecasts are upgraded to reflect the new guidance range for EBITDA between $92-96m.

Target price is $5.35 Current Price is $5.48 Difference: minus $0.13 (current price is over target).
If APO meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates APO as Neutral (3) -

APN Outdoor has lifted FY18 earnings guidance to $92-96m from a prior $89-90m implying, the broker suggests, the company has now more than replaced the loss of Yarra trams with other revenue streams. The outdoor sector in general has also had a strong start to the year, the broker notes.

APN has made a $500m offer for HT&E's ((HT1)) Adshel. The broker suspects HT&E would prefer a cash bid, which may require APN to raise capital. Neutral retained, target rises to $5.30 from $4.40.

Target price is $5.30 Current Price is $5.48 Difference: minus $0.18 (current price is over target).
If APO meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.58, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates DMP as Upgrade to Add from Hold (1) -

Morgans continues to believe that 20% net profit growth in FY18 will be a tall order, although any miss is likely to be modest. The broker expects the company can deliver around 15% net profit growth per annum over the next 3-5 years.

The broker also notes potential upside from further acquisitions and suspects the company will not launch a new category/territory without material accretion being on the cards. Rating is upgraded to Add from Hold. Target is raised to $51.51 from $50.39.

Target price is $51.51 Current Price is $47.55 Difference: $3.96
If DMP meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $47.39, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates FMG as Sell (5) -

The company has approved the Eliwana project to maintain capacity and 170 mtpa, as expected. Citi notes this is also the first part of the plan to improve the grade of the product in response to the high discounts for lower-grade iron ore.

Capital expenditure for the project is US$1.28bn with US$160m to be spent in FY19. Production will commence in December 2020.

Sell rating and $4 target maintained.

Target price is $4.00 Current Price is $4.50 Difference: minus $0.5 (current price is over target).
If FMG meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.19, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates FMG as Outperform (1) -

The company has approved the development and associated rail project at Eliwana. This project will underpin a new premium product for the company, with an iron content of 60%.

How much 60% iron product will be within the minimum 170mtpa guidance remains unclear to Credit Suisse. The broker suspects, if discounts normalise to levels seen in 2016, a decision may be made to revert back to the existing strategy of the company's blend as the primary product.

Outperform rating and $5.75 target maintained.

Target price is $5.75 Current Price is $4.50 Difference: $1.25
If FMG meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates FMG as Accumulate (2) -

The company has approved the Eliwana project, which will replace the Firetail mine once depleted. Ord Minnett expects costs to be similar to the company's current weighted average cost of around US$12/t.

The broker considers the development pivotal in allowing the company to execute on its new high-grade product.

Ord Minnett maintains an Accumulate rating and $5 target.

Target price is $5.00 Current Price is $4.50 Difference: $0.5
If FMG meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates FPH as Neutral (3) -

Citi reduces FY19-20 estimates by -6-7%. FY18 results were largely in line with expectations.

The broker considers the stock is fairly valued and the results continue to be driven by high-quality growth from the hospital division.

Neutral. Target price is raised to NZ$13.40 from NZ$13.20.

Current Price is $12.12. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates FPH as Underperform (5) -

FY18 net profit was up 12% and in line with expectations. Credit Suisse believes, generally, the company is operating at scale and continues to execute in attractive markets. Yet, following a 9% bounce off the mid April lows, the stock is trading at 16% above valuation.

Credit Suisse remains enthusiastic about the company's prospects but does not believe this is commensurate with the risks around the product cycle or competition. Accordingly, an Underperform rating is maintained. Target is NZ$12.00.

Current Price is $12.12. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates FPH as Sell (5) -

Fisher & Paykel's result was largely in line with the broker, albeit lower litigation costs were required to offset slower underlying revenue growth. FY19 guidance suggests further subdued growth ahead as the broker expected.

Competition in masks and the vagaries of the annual flu season linger and the broker notes the stock trades at a strong valuation premium to medical device peers. Sell retained, target rises to NZ$11.75 from NZ$11.65.

Current Price is $12.12. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates HSN as Downgrade to Hold from Buy (3) -

Ord Minnett observes the share price is now 15% higher since the February result. The broker upgrades FY18 operating earnings estimates by 1% but downgrades to Hold from Buy on valuation.

Forecasts imply a margin of 27.4%, consistent with company guidance. While the broker leaves some room for the company to outperform, it suspects the share price is now factoring in a bigger upgrade than is likely. Target is raised to $4.54 from $4.47.

Target price is $4.54 Current Price is $4.51 Difference: $0.03
If HSN meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IGO as Neutral (3) -

The company will divest the Jaguar mine for $73.2m, which is above Citi's valuation of $30m. An amount of $48.2m will be deferred over three years in annual instalments.

The company, after Long closes in the current quarter, will have just two producing mines and only one that it operates (Nova).

The sale of Jaguar will increase the nickel revenue share to 50% from FY19. Neutral. Target is raised to $5.20 from $5.00.

Target price is $5.20 Current Price is $4.70 Difference: $0.5
If IGO meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates IGO as Equal-weight (3) -

The company plans to sell the Jaguar operation for $73m. Accounting for deferred payments, Morgan Stanley estimates the deal is a -15% discount to its valuation but does not consider this material.

Jaguar has performed poorly over the last two quarters, the broker notes. The company will now be a two-asset operation - Nova and Tropicana - retaining operating control only at Nova.

The broker maintains a Equal-weight rating, Attractive industry view and $4.55 target.

Target price is $4.55 Current Price is $4.70 Difference: minus $0.15 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.72, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IOF as Buy (1) -

Blackstone has made a $5.15 per share, net of dividend, bid for the company which Investa Office intends to recommend via a trust scheme. Blackstone does not intend to make a facilitation payment for management rights and may decide to retain Investa as manager.

Citi suggests, on balance, the offer could be enough to get over the line, given the 4% premium to net tangible assets is in line with recent transactions.

The proposal reaffirms the broker's preference for office and industrial-exposed A-REITs. Buy rating and $4.96 target maintained.

Target price is $4.96 Current Price is $5.15 Difference: minus $0.19 (current price is over target).
If IOF meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.71, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates IOF as Underweight (5) -

The company has received an indicative proposal from Blackstone Singapore. Unit holders will be entitled to $5.25 cash, less any distributions declared since May 4.

Directors intend to recommend unit holders vote in favour subject to an independent expert report. Blackstone has not made a decision about the future management and will continue with its due diligence.

Underweight. Target is $4.60. Industry view is Cautious.

Target price is $4.60 Current Price is $5.15 Difference: minus $0.55 (current price is over target).
If IOF meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.71, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IOF as Neutral (3) -

The questions arising as a result of Blackstone's $5.25 bid for Investa Office are can 19.5% Investa stakeholder ICPF vote under the proposed scheme and what is the REIT's mark-to-market net tangible asset value, given NTA valuations are the least up to date in the sector, the broker notes.

The broker suggests the directors will still support the bid if it equates to less than NTA, given big discounts are prevalent in the office sector. Neutral and $4.44 target retained.

Target price is $4.44 Current Price is $5.15 Difference: minus $0.71 (current price is over target).
If IOF meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.71, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates JHX as Equal-weight (3) -

The asbestos liability review has shown a third year of lower-than-expected claims and a second year of lower-than-expected claim costs.

Morgan Stanley suggests the liability is more stable and this allows investors to return to focus on the business and the impending expansion into Europe.

Equal-weight rating. Target is $23.00. Cautious industry view.

Target price is $23.00 Current Price is $21.92 Difference: $1.08
If JHX meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $24.79, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY19:

Forecast for FY20:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates MTS as Neutral (3) -

Management has guided to around $180m in FY18 food & grocery EBIT. Citi observes organic earnings growth is under pressure, and suggests the loss of the Drakes South Australia contract from FY20 can be managed, as long as this is an isolated situation.

The broker suspects the company may be at risk of losing up to three contracts in re-negotiations over the next 12 months. Target is steady at $2.90. Neutral rating retained.

Target price is $2.90 Current Price is $3.03 Difference: minus $0.13 (current price is over target).
If MTS meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates MTS as Underperform (5) -

The announcement of a potential new distribution centre in South Australia signals increasing capital expenditure and Credit Suisse considers this an undesirable allocation of capital in the declining food distribution business.

The announcement also came with news of the loss of a major customer, Drakes Supermarkets, from FY20.  Credit Suisse suspects this probably reflects the commitment that Metcash requires, and the difficulty in securing retailer revenue to support investment.

The broker still does not rule out the potential for capital returns at the FY18 result. Underperform. Target is $2.70.

Target price is $2.70 Current Price is $3.03 Difference: minus $0.33 (current price is over target).
If MTS meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates MTS as Hold (3) -

Deutsche Bank suggests the cost reduction program is masking the underlying trend as the company will eventually run out of cost reduction opportunities and the potential exit of Drakes Supermarkets is a reminder of the challenges facing the business.

The Metcash customer cohort is losing market share and there is risk independent supermarkets source product from elsewhere. Hold maintained. Target is $2.80.

Target price is $2.80 Current Price is $3.03 Difference: minus $0.23 (current price is over target).
If MTS meets the Deutsche Bank target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates MTS as Overweight (1) -

Drakes Supermarkets in South Australia has indicated it will not commit to Metcash as a supplier. This is disappointing, Morgan Stanley asserts, as Metcash has been investigating the establishment of a new distribution centre in the state.

Nevertheless, the broker does not believe this signals there will be more departures. Drakes is contracted until June 2019 so the impact is not likely to be felt until FY20. Gross margins are also unlikely to be affected as Drakes in SA represents only 3% of the company's food & grocery sales.

Overweight rating maintained. Cautious sector view. Target is reduced to $3.90 from $4.00.

Target price is $3.90 Current Price is $3.03 Difference: $0.87
If MTS meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates MTS as Accumulate (2) -

Metcash has flagged FY18 supermarket earnings of $180m, below forecasts, although Ord Minnett notes second half EBIT did grow. Drakes Supermarkets in South Australia will not support the new distribution centre proposal and its current supply agreement remains effective until June 2019.

Ord Minnett notes food deflation is easing and there are signs that some inflation is occurring at a faster rate than previously envisaged. Meanwhile, growth at Aldi is moderating and the Coles ((WES)) de-merger creates an environment where food deflation could reduce.

Accumulate. Target reduced to $3.60 from $3.75.

Target price is $3.60 Current Price is $3.03 Difference: $0.57
If MTS meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates MTS as Neutral (3) -

Guidance to flat FY18 grocery earnings is below the broker's forecast. The potential loss of SA customer Drakes implies some $270m of lost business or 2% of group revenue. The Drakes exit, to establish its own vertical model, raises the question of whether others might follow.

The broker suspects not in the short term while others wait to see if Drakes is successful. Meanwhile, capital management is still expected as Metcash turns net cash in FY18, with cost-outs exceeding the broker's estimates. Neutral retained, target falls to $2.95 from $3.10.

Target price is $2.95 Current Price is $3.03 Difference: minus $0.08 (current price is over target).
If MTS meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates SDF as Accumulate (2) -

Management has painted a positive picture for medium-term earnings from the expected uptake of the client trading platform. The company is targeting 80% of its network gross written premium through this platform within five years.

More details will be forthcoming at the FY18 result. Ord Minnett does not currently include any earnings upside from the platform but envisages up to 20% potential upside to FY22 pre-tax profit. Accumulate rating and $2.95 target maintained.

Target price is $2.95 Current Price is $2.70 Difference: $0.25
If SDF meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Deutsche Bank rates SGR as Buy (1) -

The company's investor briefing has highlighted favourable licence conditions, attractive markets and long-term growth opportunities, although Deutsche Bank notes this is tempered by a softer trading update and higher-than-expected capital expenditure from FY19.

The broker maintains a Buy rating with the stock trading at a -16% discount to valuation. Target is $6.10.

Target price is $6.10 Current Price is $5.14 Difference: $0.96
If SGR meets the Deutsche Bank target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 19.6% (ex-dividends)

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates SGR as Overweight (1) -

Second half trading update revealed 16.4% normalised revenue growth. While this is below Morgan Stanley's estimates, the broker notes it is still ahead of most expectations.

The broker expects VIP to have a record year as the Gold Coast benefits from the recent investment. The company is more positive on the long-term outlook in Queensland.

Overweight and $6.00 target retained. Industry view: Cautious.

Target price is $6.00 Current Price is $5.14 Difference: $0.86
If SGR meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SGR as Buy (1) -

Star Entertainment's investor day highlighted solid foundations for Brisbane/Gold Coast growth driven by attractive demographics, regulatory advantages and complementary business partners. A trading update suggested slower domestic gaming growth than the broker had forecasts but stronger VIP.

Overall the broker found the presentation incrementally positive. Buy and $6.20 target retained

Target price is $6.20 Current Price is $5.14 Difference: $1.06
If SGR meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 19.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY18:

Forecast for FY19:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources